USDA May Production Report

Even though we still have acres to plant, the USDA has released its May crop production and supply and demand report.  On the corn side the USDA is looking at tighter ending stocks projecting a carryover of 1.6 billion bushels for '09 and 1.145 billion for the '09-2010 marketing year.  Corn production for the year is projected at 12 billion bushels at an estimated price of $4.00 per bushel.  For soybeans the USDA is looking at a near record crop of 3.2 billion bushels with ending stocks of 130 million bushels and an estimated price of $9.45 per bushel.  The wheat crop is expected to be off almost 20% from last year with an estimated lower price of $5.20 per bushel.

The report also took a look at dairy for 2010.  The USDA is expecting milk production to drop .5% on top of a .9% drop this year.  Prices for 2010 are expected to rally by nearly $3.00 a hundredweight over this year's estimates.  The USDA is calling for an all milk price of $14.70-$15.70 and a Class 3 of $13.80-$14.80.  The USDA is still projecting a 2009 average Class 3 price of $10.75-$11.05, although most market analysts feel that price range is too conservative.